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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

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Romanian Govt. rejects Transelectrica’s dividend proposal, calls for new GSM

The Romanian Government's General Secretariat, which owns a 58.7% stake in the national power grid operator Transelectrica (TEL), rejected the company's financial reports for 2020 and the dividend proposal and called for a new General Shareholders' Meeting (GSM).

The Government motivated its request by saying that the company didn't observe the legal provisions related to the profit distribution by state-controlled companies.  

Transelectrica proposed total dividends worth RON 59.6 mln (EUR 12.1 mln), of which RON 39 mln from its 2020 net profit (RON 150 mln), and RON 20.5 mln from retained earnings from previous years. However, the total dividends represented less than 40% of last year's net profit, while state companies are required to distribute at least 50% of their net profit to the shareholders.

Moreover, Transelectrica had RON 283 mln (EUR 57 mln) worth of unrestricted cash in its accounts, according to the company's latest reports, and no major investment plans for this year.

Thus, it is likely that the Government will ask the company to distribute higher dividends to its shareholders.

The previously proposed gross dividend, rejected by the shareholders, was RON 0.814 and represented only 3% of the current share price (RON 26.3). Meanwhile, other state-controlled companies, such as Nuclearelectrica, Romgaz, and Electrica, offer dividend yields of over 5%.

Transelectrica's shares are up only a mere 2.7% this year, compared to the BET index's 16% increase.

andrei@romania-insider.com

(Photo source: Adrian825/Dreamstime.com)

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

The Capital Markets News section is sponsored by the Bucharest Stock Exchange 

BVB
 

Romanian Govt. rejects Transelectrica’s dividend proposal, calls for new GSM

The Romanian Government's General Secretariat, which owns a 58.7% stake in the national power grid operator Transelectrica (TEL), rejected the company's financial reports for 2020 and the dividend proposal and called for a new General Shareholders' Meeting (GSM).

The Government motivated its request by saying that the company didn't observe the legal provisions related to the profit distribution by state-controlled companies.  

Transelectrica proposed total dividends worth RON 59.6 mln (EUR 12.1 mln), of which RON 39 mln from its 2020 net profit (RON 150 mln), and RON 20.5 mln from retained earnings from previous years. However, the total dividends represented less than 40% of last year's net profit, while state companies are required to distribute at least 50% of their net profit to the shareholders.

Moreover, Transelectrica had RON 283 mln (EUR 57 mln) worth of unrestricted cash in its accounts, according to the company's latest reports, and no major investment plans for this year.

Thus, it is likely that the Government will ask the company to distribute higher dividends to its shareholders.

The previously proposed gross dividend, rejected by the shareholders, was RON 0.814 and represented only 3% of the current share price (RON 26.3). Meanwhile, other state-controlled companies, such as Nuclearelectrica, Romgaz, and Electrica, offer dividend yields of over 5%.

Transelectrica's shares are up only a mere 2.7% this year, compared to the BET index's 16% increase.

andrei@romania-insider.com

(Photo source: Adrian825/Dreamstime.com)

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